Audit (A-04-11-03540)

Executive Summary

Coastal Family Health Center (Coastal) claimed costs that were generally allowable under the terms of the grants and applicable Federal regulations. Of the $4.6 million we reviewed, $3.6 million was allowable and $234,000 was unallowable. We could not determine the allowability of $785,000.

In addition, Coastal lacked documentation to support about $2 million of its nearly $4.9 million in grant fund draws. It also drew down grant funds totaling $217,000 after the grant period ended and before having requested and received from Health Resources and Services Administration (HRSA) a no-cost extension of the project period.

Under the American Recovery and Reimbursement Act of 2009, HRSA received $2 billion to expand the Health Center Program to meet the increase in demand for primary health care services among the Nation's uninsured and underserved populations.